Richard Cayne Meyer – 10 Investment Mistake To Avoid
While most people will advise you on what to do when it comes to money matters, one seldom comes across advisors who tell you what to steer away from. Richard Cayne of Meyer International, during his 18 years of financial consulting in one of Asia’s top financial consultancies, has come across certain common mistakes done by amateurs as well as pros in the investment arena, which separate average portfolios from excellent ones.
- Don’t head into the world of investments without a clear picture regarding your finances, budget, financial goals or risk tolerance. The failure to assess either of these aspects can cost you in the long-run in terms of monetary restrictions and bad choices, advises Richard Cayne of Meyer International.
- Don’t get emotionally attached to investments that no longer perform well. Richard Cayne of Meyer International says that it is a common mistake to hold on to investments that may have served you well in the past, but do not have any place in your future; evolution is key in such a situation.
- Don’t try to time the markets by indulging in short-term trading. Richard Cayne of Meyer International advises that one should rather make use of cost averaging by keeping investments regular.
- Don’t let your emotions take control when making investment decisions. It has been commonly observed that many individuals go on an investment spree when the market is soaring and get disheartened quickly as it drops. Richard Cayne of Meyer International says that buying high and selling low is one of the most lethal behaviors for your portfolio.
- Don’t make rash decisions. Read all investment documents carefully and exercise common sense as to whether the company will be able to deliver on your expectations, or is it simply overpromising.
- Don’t be afraid of taking risks as this is what might force your portfolio to remain. Calculated risks within your tolerance levels are important to make the most of your investments.
- Don’t make investments only for tax benefits. Richard Cayne of Meyer International mentions that tax conditions can change over time, which can turn a previously favorable investment into a burden for the individual.
- Don’t place all your eggs in the same basket. A golden rule in the world of investments; diversification not only helps you increase gains from different avenues, but also mitigate risks.
- Don’t let your investment strategy go stale. Regular reviews and assessments will make sure that your investments stay aligned with your financial situation as well as goals.
Don’t consider financial consultancy as an expense. Richard Cayne of Meyer International explains that a professional advisor will have access to more knowledge and insight into investments than you would even after spending a considerable time studying up. Hiring an experienced financial consultant will prove to be a prudent investment over time.